DOUBLE INCOME TAX

Dominion, Volume 10, Issue 2959, 23 December 1916, Page 3

DOUBLE INCOME TAX

ENGLISH FIRMS TROTEST

DEPUTATION TO MR. MASSEY

Advantage is being taken _ of the presence in England of tho Prime Minister (Hon. W. F. Massoy) and Sir Joseph Ward by the English manufacturers interested in the New Zealand market to protest against tho imposition of the double income tax, which was severely criticised in 1913 and 1914. Tho position is that English manufacturers are taxed at Home on their profits, and if they have :tn. accredited agent in this country 110 has to pay income tax also on profits assessed by the authorities here. The inequity of the tax from tho manufacturers' point of view is that it does not work even-handedly, inasmuch as there are many British manufacturers doing a big business with New Zealand who do not have ail agent here, but whoso goods reach the tradespeople and merchants of the Dominion through tho latter's London buyers. A further complaint is made at this end that the assessment is often disproportionate to tho actual profits made by the manufacturer. ,

That tlie firms at Home are taking up the matter very seriously is shown in letters their representatives here have received quite recently. Messrs. Lane and Girvan, a big Glasgow firm of iron founders, write under date November 2:—

"We think it would be well for you to draw the attention of your Government to the very obnoxious, pin-prick-ing nature of this tax as illustrated by the pai'allel drawn in our letter. If our colonial Governments, especially Australia and New Zeaand, continue the hostile policy they have adopted towards British trade, illustrated by this income tax upon commercial travellers and manufacturers' agents visiting New Zealand from the Old Country, it must sooner or later lead to A crusade in this country in favour of reciprocal treatment being applietl to colonial products. It is to bo hoped that if tho war does nothing else it will at least bring our colonial friends to their senses in respect of the absolute necessity of giving tho samo fair play to British products that this country gives to colonial products.''. The same firm also wrote the UnderSecretary of State, . Loudon, as follows :— -

"Our Now Zealand representative calls our attention specially to the fact that the Bight Hon. •W. F. Massey, Prime Minister, and Sir J. G. Ward, Finance Minister, are to visit England, and liopes that the visit of these two officials of the New Zealand Government to London would bo taken advantage of to make a settlement ot tho income tax levied upon him in respect of the supposed profit made by ns on goods shipped to New Zealand. As tho .orders for DO per cent, or more of our Ts T ew Zealand shipments come from London agents of tho Now Zealand buyers, and these agents aro tho actual shippers of the goods, tho charge is particularly offensive. If one could imagine a tax imposed upon the sta-tion-owners of New Zealand for every sheep sold by them and ultimately exported to this country, and upon every other producer in Now Zealand of goods or produce shipped to this country, the responsibility for the due payment of such tax being fastened on the importers in this countryj a parallel to the position of our New Zealand representative would be disclosed, and that seems to bo tho reductio ad. absurdum of this impost." On. tho samo subject, Lockwood Bros., .of. Sheffield, write: — "Tlio matter; tax is being given the serious attention of the United Chambers of Comm'erco of England, who have'' approached the Government on tho subject: Wo understand that negotiations aro en foot between the English and colonial Governments, with a view of cither suppressing this doublo tax altogether, or making some kind of fair adjustment." Messrs. Campbell, and Co.; iron and steel merchants, write:— "Regarding tho_ question of income tax. the general feeling here is that it is an iniquitous tax, and. representations have been made to your Prime Minister. We took the matter up with the Patent Hingo Makers' Association, who communicated witli the Birmingham Chamber .'of Commerce. The latter'body has made a. formal application to the Hon. W. F. Massey, for a deputation to be received by him from the British and other Chambers of Commerce, in order to attack the matter. Further, I had an interview witli the secretary of the London .Chamber of 'Commerce, .and understood that they had already asked tho Prime Minister to receivo a deputation, and I trust the result may be satisfactory."